Land Lease Agreements in General

A land lease agreement is an agreement regarding lease of real estate or land for a fixed term or until further notice against payment.

Land lease agreements are subject to the Tenancy Act. The Tenancy Act differentiates between five types of tenancies, which are all subject to different rules. Tenancies are classified into leases of a plot of land, leases of other residential area, leases of developed farmland, lease of agricultural land and lease of other land not falling within any of the aforementioned types. For further information, see [Lease of a Plot of Land], [Lease of Other Residential Area], [Lease of Developed Farmland and Agricultural Land] and [Lease of Other Land].

The Tenancy Act is, however, not applicable if a tenant is permitted to use the land in conjunction with a residential lease. In this case, either the Act on Residential Leases or Business Leases is applied. However, a land lease under the Tenancy Act may also include a building, and the applicable law will be determined on a case-by-case basis, depending on the emphasis of the relationship between the land and the building in the agreement.

The Code of Real Estate contains provisions regarding registration in the Title and Mortgage Register of leases of real estate. The holder of a fixed-term lease or other usufruct on a real estate owned by another shall apply for registration of his right, if the lease is transferable to a third party without consent of the titleholder, and if there are buildings or other constructions belonging to the leaseholder on the real estate, or if it has been agreed that such buildings or other constructions may be erected. The time limit applicable to such applications for registration corresponds to the time limits set for registrations of title to real estate, which generally is six months of the conclusion of the contract.